Things To Know About Debt Buyers

We have an idea of bad rap debt collectors shown in television and movies. There are many misconceptions about debt collectors, which honestly come from the debt buyers’ behavior. If you are finding new ways to pursue unpaid invoices, you have to understand the differences between debt collectors and debt buyers. Contact a Chicago debt collection defense attorney to understand and recover large or pursue debts from large companies.

Things to know about debt buyers

We should know certain things about debt buyers, which are mentioned below.

  1. The FDCPA restricts debt collectors from using unfair, abusive, or deceptive practices when collecting debts.
  2. Under the FDCPA, a debt collector may not:
  • Threaten violence or harm;
  • Use obscene or profane language;
  • Make repeated phone calls or calls at unreasonable hours;
  • Make false or misleading statements;
  • Falsely imply that the caller is an attorney or government representative;
  • Falsely imply that you have committed a crime;
  • Threaten to take action that cannot legally be taken;
  • Threaten to garnish your wages or seize your property;
  • Give false credit information about you to anyone;
  • Send you documents that look like official court or government documents if they are not; or
  • Use any other fraudulent, deceptive, or misleading means to collect a debt.

Debts buyers do not pay a lot

Debt buyers may pay as little as $0.01 to $0.10 per dollar of debt. This means if your $1,000 debt is purchased, the buyer may only pay $100 for it.

Debt buyers typically do not have access to your original paperwork or contract. This means that if you dispute the debt, the debt buyer may have trouble proving the debt is yours.

Debt buyers can be even less reliable than debt collectors. Debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA), whereas debt buyers are not.

Debts buyers can hurt your reputation.

Debt buyers are still a threat to your reputation. They can still call you and your friends or family members. They can still threaten to sue you and can still post information about your debt on the internet. 

You do not have to reveal to people you have sold their debt.

Debt buyers are not required to tell the original creditor that they have purchased the debt. In fact, many debt buyers purchase the debt intending to collect it without the borrower ever knowing that the debt has been sold.

Once the debt has been sold, the original creditor may no longer be able to collect the debt from you. This is especially true if the debt is sold to an out-of-state debt buyer erratichour.

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